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How to understand the blockchain distributed ledger? How to establish an analysis framework from a financial perspective?
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When it comes to financial infrastructure, we must first understand what financial infrastructure is. Financial infrastructure can be divided into two parts. The first part is the financial system infrastructure. The second part is the financial market infrastructure.
There is a branch of financial system infrastructure, called financial market infrastructure. Financial market infrastructure is more micro-oriented, technical and the operation of the entire financial market. The main components include the establishment of such a basic framework from transactions, clearing and settlement. Therefore, its main contents include registration and custody, clearing and settlement, transaction facilities, transaction reporting library, and credit reporting system. When we discuss the main framework of financial infrastructure, we will find that the distributed ledger based on blockchain may not be an improvement in marginal benefits in these aspects, but a disruptive development in terms of transactions, clearing and settlement. The payment, clearing and settlement we often talk about are actually three different stages of the financial market. Payment means that we swipe our cards at the store, and this behavior is called payment. After you swipe your card, you will go through a clearing system, first notify my bank to check whether I have the money in my bank account, and if so, deduct the money, which is called settlement. The third step is clearing. Clearing means that the bank account of this store may be another bank, so I need to transfer my money to that bank and to the merchant's account. After the funds are transferred, the settlement process is also completed. Financial market infrastructure mainly focuses on this aspect of work.
The possibility of new financial infrastructure brought by blockchain. The new financial infrastructure is essentially different from traditional financial infrastructure. First, the accounting method is different. Distributed accounting and double-entry accounting are two different accounting methods. Second, the accounting accounts are also different. Traditional finance relies on bank accounts to record all our economic activities, but in the new financial infrastructure, there are no bank accounts, more digital wallets, so they are collectively called crypto accounts. Third, the accounting unit is different. The accounting unit in the traditional financial infrastructure is legal currency, whether it is RMB, Euro, or US dollar, these are all sovereign state currencies, all legal tender. In the new financial infrastructure, the accounting unit is cryptocurrency, or at least you must tokenize the legal currency, such as USDT, USDC, otherwise you cannot use it as an accounting unit in the new financial infrastructure.
The volatility of crypto asset markets such as Bitcoin is also quite significant. Some investors regard Bitcoin as digital gold. When traditional markets fluctuate, safe-haven demand drives funds into Bitcoin, causing its price to rise in the short term. However, Bitcoin's price volatility is high and is greatly affected by market sentiment. Whether the market will regard it as a long-term safe-haven asset remains to be seen. Overall, Trump's reciprocal tariff policy has exacerbated uncertainty in the global market, prompting funds to flow rapidly between the stock market, bond market, foreign exchange, commodities and crypto markets. Investors need to pay more attention to changes in the macroeconomic situation to cope with possible market fluctuations.
The new financial market infrastructure relies on the blockchain, an open and transparent global public ledger. Assets registered on the blockchain mean that you gain globality and establish global liquidity.
New generation of money creation system
New generation of business governance system
New generation of wealth distribution system
New generation of asset trading system
New generation of payment and settlement system
